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Amazon stock jumps 15% on AWS-led ‘home run’ quarter
AWS revenue rose 36.7% year over year to $42.2 billion, and Amazon raised planned AI infrastructure capex to about $220 billion.
Amazon shares surged 15% on Friday after the company topped second-quarter expectations, with accelerating cloud growth at Amazon Web Services driving the results. Yahoo Finance said the earnings move sparked a focus on AWS momentum and the company’s AI infrastructure spending plans.
AWS generated $42.2 billion in second-quarter revenue, up 36.7% year over year, supported by both core cloud activity and AI services. Amazon reported that its AI and custom chip businesses each passed a $25 billion annualized revenue run rate, and CEO Andy Jassy said the company added over $4.6 billion in revenue quarter over quarter.
On the earnings call, Jassy highlighted a backlog of $496 billion that is growing triple digits year over year. The company also said it is increasing capital expenditures on AI infrastructure to approximately $220 billion, up from prior guidance of around $200 billion.
Wall Street reaction was tied to the tradeoff between higher AI spending and AWS growth, with CFRA Research describing the quarter as a strong outcome. Jassy also said demand for AI and cloud computing continues to outstrip server capacity, and that planned 2027 expansion is largely booked into 2028.